Kremer: A positive move for state energy policy

By: Commentary October 25, 2016Comments Off on Kremer: A positive move for state energy policy

By Jerry Kremer

The last time I looked at a map, New York State ran from Buffalo to Plattsburgh, downstate to the city and Long Island. Our state is made up of 62 counties and a more diverse population than any of the 50 states.

The time has long passed to rehash the Shoreham debacle and the way Gov. Mario Cuomo pushed to close the plant, including the resulting benefits to bondholders. It is fair to note that almost every member of the Assembly and Senate from Long Island voted for the bailout following the will of their constituents, knowing full well that there was no guarantee of state support.

To this day Long Island consumers and businesses are paying the price for what was no doubt a major mistake with a lot to blame on both sides.

The real question in Steve Levy’s mind seems to be why must downstate New Yorkers pay to “bailout” upstate nuclear plants whose jobs and power nearly exclusively benefit upstate?

There are several reasons. I am sure the people of Ithaca would have a strong case to make about why they should not help pay for new cars for the Long Island Rail Road or the New York City subway. Many other communities could also be howling mad about giving up precious upstate hydropower to help struggling businesses downstate.

Aside from the fact that we in New York have, since our creation, always provided benefits around the state, there are more practical reasons for asking ratepayers to very modestly support keeping upstate nuclear plants running. The assistance comes through a zero emissions credit which takes into account the societal benefits nuclear provides as it does not emit carbon or other toxic emissions.

The State of New York calculates these savings to be $1.4 billion in public health and other societal costs. The Public Service Commission also took a holistic look at the overall financial impact of the Clean Energy Standard, the program through which the assistance is provided. Because it keeps plants up and running, which account for 24,000 jobs and significant tax payments and other economic activity, the program will provide a net benefit of $4 billion to New York in its first two years. These benefits help people upstate and downstate.

In fact, the state’s energy czar, Richard Kauffman, has strongly refuted claims made by the New York Public Interest Group, which are similar to Levy’s, about the cost of the program.

In an Oct. 5 letter to NYPIRG, Kauffman says, “Your claim that the Clean Energy Standard will cost an estimated $8 billion is deeply flawed and predicated on the wrongheaded assumption that energy prices will stay the same as they are today (currently at historic lows) through 2030. This is highly unlikely, and refuted by forecasts from the U.S. Energy Information Administration and the Public Service Commission.”

Gov. Cuomo has wisely proposed that New York reduce its greenhouse gas emissions 80 percent by 2030 to show important leadership in addressing the severe threat of climate change. It is an accepted scientific fact that nuclear power is the cleanest form of energy on the market and its continued use will help New York meet these important goals.

Without the upstate nuclear plants, there would be an immediate spike in the use of fossil fuels and a spike in emissions. Wind and solar alone will not fill the resulting gap.

The road to a cleaner energy future is not easy or cost free. But an important part of the best way to get there, for all New Yorkers, is to keep upstate nuclear plants running.

Kremer is a former assemblyman from Long Island who served as chairman of the Ways & Means Committee. He now serves as chairman of the New York Affordable Reliable Electricity Alliance which represents more than 150 business organization, labor unions, community groups, and independent energy experts.